BMO Capital has revised its price target for FirstService Corp (NASDAQ:FSV) down to $202 from $209, while leaving its rating on the stock at Outperform. The new target implies roughly 30% potential upside from FirstService’s current share price of $158.68, with the stock trading notably below its 52-week peak of $209.66.
The analyst move follows FirstService’s fourth-quarter 2025 financial report, which BMO characterized as a "beat". Adjusted EBITDA in the company’s FirstService Residential segment exceeded BMO’s forecasts, while FirstService Brands delivered results that were consistent with expectations. For the last twelve months, FirstService reported total EBITDA of $535.41 million.
FirstService also posted quarterly operating results that outperformed consensus on both the bottom and top lines. The company reported earnings per share of $1.37, ahead of the analyst projection of $1.33. Revenues came in at $1.38 billion versus a projected $1.36 billion.
BMO highlighted several near-term pressures. The firm said macroeconomic uncertainty had a dampening effect on FirstService’s Roofing operations. The Restoration business, meanwhile, faced a challenging year-over-year comparison and reduced storm activity, which together weighed on volumes and results.
Looking forward, BMO expects adjusted EBITDA growth to be modest in the first quarter of 2026 as broader macroeconomic headwinds persist. The firm projects growth to build across the remainder of 2026, however, and continues to view FirstService’s long-term compounding capability as attractive. BMO described the recent pullback in the stock as a "particularly attractive buying opportunity."
Dividend dynamics are another data point noted in the coverage. InvestingPro data referenced by the analyst shows FirstService has increased its dividend for 11 consecutive years, with dividend growth of 22% in the most recent period.
Context for investors
- Price-target revision stems from post-quarter reassessment rather than a change in rating; Outperform maintained.
- Operational segmentation matters: Residential exceeded expectations, Brands were in-line, Roofing and Restoration faced headwinds.
- Near-term EBITDA growth is expected to be muted, with the firm anticipating a pickup later in the year.
This report summarizes BMO Capital’s published view and FirstService’s reported results. Where the company’s results or the analyst commentary are limited in scope, those limitations are reflected in the points above rather than supplemented with additional assumptions.